Many Canadian founders know BDC as a lender. Fewer understand how BDC venture capital and growth capital funds work, and how these funds can fuel high-growth startups. BDC Capital is the investment arm of the Business Development Bank of Canada. It invests billions into the venture ecosystem. Most of this money goes to backing funds, but sometimes, BDC invests directly alongside them.
If you are raising venture or growth equity, knowing how BDC fits into the picture can shape your fundraising strategy.
BDC does not operate like a traditional grant program. Its venture and growth capital activities are equity-based. This means you give up ownership in your company in exchange for capital, not grants.
There are two main ways BDC supports startups:
Under the BDC Fund Investments program, BDC invests as a limited partner in Canadian venture capital and growth equity funds. It does not invest directly into startups (Program ID: c00d0711-3be9-5b14-bf9d-b5faede73281).
How this affects your startup:
What BDC looks for in fund managers:
This model helps expand the amount of private capital available to Canadian startups, especially in underserved sectors and regions.
BDC also invests through its own BDC Capital venture capital and growth capital funds (Program ID: 5cb996c0-41ec-4f25-bd42-f70d6a0d7d98).
These funds target Canadian technology companies with strong growth potential. They typically invest at different stages:
Funding is repayable equity, not non-repayable support.
Tools like GrantHub’s eligibility matcher can help you filter funding programs by stage, province, and industry in seconds—especially useful when comparing venture capital to repayable or non-repayable options.
BDC venture capital and growth capital funds focus on innovation-driven businesses with the potential to scale globally.
Typical characteristics include:
Priority areas often include:
BDC does not fund lifestyle businesses, traditional retail, or companies without a clear growth trajectory.
If you are a startup founder, you usually do not apply directly to BDC Fund Investments.
Instead:
Timelines vary. Due diligence is thorough. It includes financial, governance, and market reviews.
Assuming BDC venture capital is a grant
BDC venture and growth capital funding is equity-based. You give up ownership in exchange for capital.
Pitching too early or too late
BDC-backed funds are stage-specific. A seed-stage pitch to a growth fund will not move forward.
Ignoring DEI and governance expectations
BDC places real weight on diversity, governance, and reporting standards, especially at the fund level.
Targeting BDC directly without a VC strategy
For most founders, the right entry point is a VC fund, not BDC itself.
Q: Is BDC venture capital funding repayable?
Yes. BDC venture and growth capital is equity-based. Returns come from company growth or exit, not fixed repayments.
Q: Does BDC Fund Investments invest directly in startups?
No. BDC Fund Investments backs fund managers, who then invest in Canadian startups (Program ID: c00d0711-3be9-5b14-bf9d-b5faede73281).
Q: How much can a startup receive from BDC Capital funds?
Investment sizes vary by fund, stage, and round size. There is no fixed maximum or minimum published.
Q: What is the BDC Thrive Platform?
It is a platform within BDC Fund Investments focused on women-led or co-led venture capital funds and increased investment in women-led companies.
Q: Are non-tech businesses eligible?
Generally no. BDC venture capital and growth capital focus on technology-driven, high-growth companies.
BDC venture capital and growth capital funds play a major role in Canada’s startup financing system, but they are only one piece of the puzzle. GrantHub tracks hundreds of active grant and funding programs across Canada. This helps you see how equity, repayable loans, and non-repayable funding fit together for your business at each stage.
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